Airtel Uganda

Capital Markets Day

10 August 2023
Disclaimer
The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwise shall be subject to the applicable laws
and regulations as amended from time to time. There is no representation, express or implied, that all information relating to the context has been taken care of in the
presentation and neither do we undertake any obligation as to the regular updating of the information as a result of new information, future events or otherwise. We will
accept no liability whatsoever for any loss arising directly or indirectly from the use of, reliance on any information contained in this presentation or for any omission of
information. The information should not be distributed or used by any person or entity in any jurisdiction or countries where such distribution or use would be contrary to
the applicable laws or regulations. It is advised that prior to acting upon this presentation, independent consultation / advice may be obtained and necessary due
diligence, investigation etc. may be done at your end. You may also contact us directly for any questions or clarifications at our end.

This presentation contains certain statements of future expectations and other forward-looking statements, including those relating to our general business plans and
strategy, our future financial condition and growth prospects, and future developments in our industry and our competitive and regulatory environment. These
statements by their nature, are subject to unknown risks & uncertainties. In addition to statements which are forward looking by reason of context, the words ‘may, will,
should, expects, plans, intends, anticipates, believes, estimates, predicts, potential or continue’ and similar expressions identify forward-looking statements. Actual results,
performances or events may differ materially from these forward-looking statements including the plans, objectives, expectations, estimates and intentions expressed in
forward-looking statements due to a number of factors, including without limitation future changes or developments in our business, our competitive environment,
telecommunications technology and application, and political, economic, legal and social conditions in Uganda. It is cautioned that the foregoing list is not exhaustive.

The information contained herein does not constitute an offer of securities for sale in Uganda or any other jurisdiction. Securities may not be sold in Uganda without the
approval of the Capital Markets Authority in accordance with the Capital markets Authority Act (Cap 84). Any public offering of securities to be made in Uganda will be
made by means of a prospectus and will contain detailed information about the Company and its management, as well as financial statements. No money, securities
or other consideration is being solicited, and, if sent in response to the information contained herein, will not be accepted.

Certain numbers in this presentation have been rounded for ease of representation.

2
Today’s Agenda
Time (EAT) Section Item Presenter(s)

Managing Director
9:45 - 10:05 1 Welcome & Airtel Uganda Overview Manoj Murali
Airtel Uganda

Managing Director
10:50 - 10:20 2 Investment Highlights Manoj Murali
Airtel Uganda

Chief Commercial Officer Marketing Director

10:20 - 10:30 3 Win with Distribution Amit Kapur Henry Njoroge
Airtel Uganda Airtel Uganda

Networks Director IT Director

10:30 - 10:40 4 Win with Technology Rajesh Agrawal Donald Twesiga
Airtel Uganda Airtel Uganda

Human Resources Director

10:40 - 10:50 5 Win with People Flavia Lwanga
Airtel Uganda

Legal and Regulatory Director

10:50 - 11:00 6 Corporate Governance Dennis Kakonge
Airtel Uganda

Finance Director
11:00 - 11:20 7 Financial Performance Nishant Mohan
Airtel Uganda

Managing Director
11:20 - 11:25 8 Offering Summary Manoj Murali
Airtel Uganda

11:25 - 11:40 9 Q&A Airtel Management Team

Managing Director
11:40 - 11:45 10 Closing Remarks Manoj Murali
Airtel Uganda

11:45 - 12:45 Lunch

3
 Airtel
Uganda
Overview

Prior Experience
• Previously CEO Airtel Kerala and Tamilnadu

Offering Summary
Managing Director of Airtel Uganda Limited since
October 2020, he holds a MBA from Symbiosis
Manoj Murali International University and a BE in Instrumentation
Managing Director & Electronics from University of Poona
Airtel Uganda Years of exp. 22+

4
The Airtel Uganda Management Team
Experienced team with a deep bench of leadership

Manoj Murali Nishant Mohan Dennis Kakonge

Managing Director Finance Director Legal and Regulatory Director
Previous experience Previous experience Previous experience

22+ 20+ 18+

Amit Kapur Henry Njoroge Rajesh Agrawal

Chief Commercial Officer Marketing Director Networks Director
Previous experience Previous experience Previous experience

19+ 18+ 21+

Donald Twesiga Flavia Lwanga Allan Semakula

IT Director Human Resources Director Enterprise Director
Previous experience Previous experience Previous experience

20+ 25+ 18+

Ali Balunywa Michael Opwonya Brendan Kachenje

Sales and Distribution Director, Supply Chain Director Sales and Distribution Director,
Core Markets Growth Markets
Previous experience
Previous experience Previous experience
10+ 19+ 15+

Years of experience Presenting team member

5
The Fastest Growing Telecom Company in Uganda
A focus on building out the best network in Uganda over time has resulted in Airtel being the most profitable telco in Uganda

47.3%(1)
customer market Leading
share EBITDA
49.3%(1) Margins
GSM revenue 55.7% (3)
share No.1 4G
Network
+2,500 Sites
100%(2) 4G
coverage
No.1 in ARPU Spectrum
UGX 10,130 Data Allocation
UGX 5,835 Voice
(3) 180.0(1,4) MHz

Sources: (1) Company Information. Bilateral market share as of Quarter ended Dec 2022. (2) Company press release. As of Dec 2022. (3) As of CY 2022. (4) Based on Spectrum assignment as of 4 July 6
2023.
Halo Effect as Part of the Airtel Group
Benefitting from a Global Parent Company in Bharti Airtel … … and a Continental Parent in Airtel Africa

Bharti Airtel is the 2nd largest telecom operator globally (2), operating across Countries Largest Telecom operator
17 countries in Asia and Africa for over 23 years with network coverage of 14 Across Africa
2nd in Africa (3)
c. 2bn people

Listed on the BSE

140.0mn Total Customers (4) $3.3 Total ARPU 9M End Dec’22
Bharti Market Cap: $64.3bn (1)
Airtel No. of Subscribers: 518mn

56% 54.6mn Data Customers (4) 90.3% of sites now on 4G (4)

Listed on the LSE

Airtel Market Cap: $5.5bn (1)

Africa No. of Subscribers: 140.0mn (4)

100%

No. of Subscribers: 13.8mn (5) Premium Listing

Airtel
Uganda

A leading global telecommunications group

✓ Deep-pocket sponsor in the form of Airtel Africa and Bharti Airtel
✓ Highest levels of corporate governance across the group
✓ Airtel Africa listed on the London Stock Exchange and the Nigerian Exchange
✓ Highly efficient procurement model Group since 2019
✓ Reaching 518mn customers, across 2 continents

Sources: (1) FactSet as at 04 August 2023, Company Financials. Notes: (2) By subscribers on a consolidated basis. (3) Regulatory websites, WCIS data and published company information (Customer
base for competitors excludes any joint ventures and associates). (4) Customer base as of March 2023. (5) As of December 2022. 7
Airtel Uganda Journey
With its roots as the first telco in Uganda, Airtel has grown into a distinctly Ugandan business with a world-class network and
offering

1995: Celtel Uganda – 1st telco in Uganda Ookla speed test

award
2007: Celtel Uganda changed to Zain Uganda
100% 2023
20 Year
Launch
4G
2010: Airtel launched in Uganda NTO
Launch of e-SIM
licence
and 5G
2014: Warid merger
Distribution 2022
reorganisation

2021
Post-paid plans

2020
300 sites in 300 3.75G
days Launch Airtel Money
2019
separation
2018

Brand 2017
launched
2016
in Uganda TV
2015
2014
2013
2011 2012 Fibre K2
2010
expansion Partnership

Mobile
Commerce Airtel and Warid
Services Merger

Source: Company Information. 8

With Continued Progress in 2023

4.0% growth in Active

Launch of 5G Subscribers to 14.3mn vs.
December 2022

Additional 10MHz of Spectrum in

Revenue growth of 8.3%
the 800Mhz band and 100Mhz in
compared to prior year
3500Mhz band, with 1,000 MHz E-
comparable period (2)
Band under reservation (1)

Uganda

Growth in dividends paid of 4.1%

Continued rollout of
compared to prior year
sites across Uganda
comparable period (2)

Recent Achievements and Awards

Most Admired Telecom 10th Annual Airtel-Kabaka Airtel, UNICEF Reaffirm Airtel Uganda Launches
Brand in Uganda Birthday Run Commitment to Accelerate VoLTE on its 5G Ready
Access to Quality Network
Brand Africa Over 100,000 Runners Education

2022 April 2023 April 2023 July 2023

Source: Company Information. Note: (1)E-Band under 71-76 / 81-86 GHz band under reservation. (2). For the period 1 January 2023 to May 2023. 9
Suite of Products and Services
Connectivity

Voice, Data Devices (2) Digital Content Enterprise

Product Overview

• Voice: pre-and post-paid Games &

Communicate Collaborate
wireless voice services Entertainment
MiFi
• Data: 2G, 3G, 4G and 5G
Music Lifestyle &
ready (1) data services Home Devotional
Broadband
• Data services may be
Connect Cloud
bundled with voice service TV News &
Smart Education
offerings
devices

• B2C and B2B

Customer Base

• Primarily serving mass market • Mass pre-paid and post-paid • B2C and B2B
customers customer
• Mid and high income • SMEs
• Increasingly targeting households
business and other • MSME
professional customers
• Home broadband customers
through FTTH

Comprehensive offering Simplicity Value for money

Note (1): Technical readiness, spectrum allocation pending. (2) MSME, Micro Small and Medium Enterprise. FTTH, Fibre to the Home. 10
Brand
Objective: To build a strong emotionally connected telco brand which resonates the passions and beliefs of Ugandans,
especially the youth
Brand vision Brand personality
✓ A brand that empowers Ugandans to imagine ✓ Innovative and Youthful
and achieve their dreams ✓ Locally connected
✓ A preferred brand for voice and data in ✓ Aspirational
Uganda ✓ Affordable
✓ Trustworthy
4G
Brand awards Brand values
5G
✓ Most admired Telecom Brand in Uganda (1) ✓ Alive – Act with passion, energy & a “can do”
✓ Best advertising campaigns (2) attitude
✓ Most visible brand (3) ✓ Inclusive – Champion diversity
✓ Best TV spot of the year (4) ✓ Respectful – Act with humility, openness &
honesty

With a Brand Built Through its Community Initiatives

Kabaka Run - 2022 Airtel K2 Uganda Cranes – Football Sponsorship

Source: Company Information.

Notes: (1) Brand Africa 2022. (2) Nigeria, 2018. (3) Malawi, 2017. (4) DRC, 2017. 11
 Investment
Highlights

Prior Experience
• Previously CEO Airtel Kerala and Tamilnadu

Offering Summary
Managing Director of Airtel Uganda Limited since
October 2020, he holds a MBA from Symbiosis
Manoj Murali International University and a BE in Instrumentation
Managing Director & Electronics from University of Poona
Airtel Uganda Years of exp. 22+

12
Key Investment Highlights
1 • Presence in Uganda with promising macroeconomics, demographics and
Market Substantial market tele-density
Potential potential • Significant mobile data opportunities supported by favourable market
dynamics

2
Leadership Leadership across • Well-diversified and leading mobile operator with scale
Position Uganda • Well-suited platform to efficiently monetise data potential

3
• Margin expansion and strong cash flow generation underpinned by a strong
Remarkable growth balance sheet
Performance
story
• Potential for high dividend pay-out

4 Customer centric • Strategy led by strong and experienced management team

Strategy
vision and mission
driving unique • Clear growth strategy, shaped by defined market catalysts and based on
strategy five key pillars

13
 Market Potential

Airtel Uganda to Benefit from Demographic and Economic Tailwinds…

Airtel Uganda continues to expand its network with pioneering technologies ensuring increased reach and penetration rates

Strong Population Growth Expected (i) … With Room for Density Through Urbanisation Gap (ii)
(Population CAGR ’23E to ’25E) Population 2021A (mn) (Urban Population as % of Total Population ’11 vs ’21)

45 599 328 1,667 2,370 655 370 448

2.7% 2.7% 2.6% 79% 81%

2.1% 68%
62%
53%
44% 38%
34% 29% 29%
1.0% 0.8% 25% 24% 27%
0.6% 20%
0.1%

Uganda Airtel East Africa⁵ Africa² APAC LatAm³ NA⁴ Europe '11 '21 '11 '21 '11 '21 '11 '21 '11 '21 '11 '21 '11 '21
Africa
LatAm⁴ South Africa Nigeria Airtel Africa East Africa⁵ Kenya Uganda
Footprint¹
Footprint¹

Growth to Outstrip East African and African Regions (i) Stable, Floating Currency (iii) (3)
(Real GDP CAGR ’23E to ’25E) (5 Year CAGR² vs. USD, ’18 – ’23A)

5.6% 5.4% 5.2% 5.2%

4.4% (0.4%) (0.7%)
4.1%
(4.6%) (4.8%) (5.1%)
3.4%
3.0%
(8.6%)
1.8%

(17.4%)

(23.6%)
Uganda East Airtel Kenya Africa³ APAC LatAm⁴ Nigeria South Ugandan Tanzanian Kenyan Airtel Nigerian South East Africa⁵ Ghana
Africa⁵ Africa Africa Shilling Shilling Shilling Africa Naira African Cedi
Footprint¹ Footprint¹ Rand

Source: (i) S&P (ii) WorldBank (iii) FactSet.

Note: (1) The footprint of Airtel Africa includes: Chad, DRC, Gabon, Kenya, Madagascar, Malawi, Niger, Rwanda, Seychelles, Tanzania, Uganda, Zambia.
(2) In relation to US$ as of 1 March 2018 – 1 March 2023. (3)Africa includes Sub-Saharan Africa and MENA. (4) LatAm includes the Caribbean. (5) Members of the East Africa Community Includes:
Burundi, DRC, Kenya, Rwanda, South Sudan, Uganda, Tanzania. 14
 Leadership Position

Significant Growth Opportunity in Uganda’s Telecom Market

Underpenetrated Market with Growth Potential
Unique SIM penetration (2022)

86%
77% 79%
73%
Significant
opportunity 53% 54%
49%
44%
in Uganda,
driven by
under-
penetrated
market Uganda Nigeria East Africa Africa APAC LatAm South Africa Europe

• A comparison of Uganda’s penetration relative to African and global markets clearly illustrates that this market is underpenetrated
• The Ugandan market is well-poised for growth as population increases and the market matures

Smartphone Penetration (2022) Data usage per customer in GB (per month)

128% Global regions - Entire market network
11.5 11.8

Lower 9.3
With
smartphone
significant
penetration 5.8
46% room for 4.2
in Uganda 40% 4.0
growth in
vs the rest 21% 2.2
data usage
of Africa

Uganda East Africa Nigeria South Africa Sub- Airtel Airtel LatAm Europe Asia North
Saharan Uganda Africa America
Africa

Source: GSMA (Global System for Mobile Communications), World Cellular Information Series, Airtel Africa results presentation, Airtel Uganda internal figures. 15
 Leadership Position

Strong Market Position Underpinned by a Fully Modernised Network

Airtel Uganda continues to expand its network with pioneering technologies ensuring increased reach and penetration rates

Modern Network Provider with Leading Technologies Evolution of Airtel’s Market Share (1,2)
49% 49% 49%
49%
48%
47% 47%
Airtel Uganda’s 4G network is country-wide and 46% 46%
based on the latest 4G technology Airtel is a 46%

close second
and
continues to 2018 2019 2020 2021 2022
narrow the
4G network covering 90.7% of Uganda’s population gap… Revenue Market Share Subscriber Market Share

• Airtel has shown sustained gains in revenue market share in the period

Evolution of Total Data Consumption (2)

Data usage in MBs (mn)
5G services launched in Uganda while enhancing 211,318
existing 4G network
…with 162,055
superior data 131,225
110,097
usage on 4G 96,445

Airtel Uganda recognised as Uganda’s fastest network 29,224

51,016 59,287
36,873
mobile network at the Mobile World Congress 26,368
based on Speed tests by Ookla(2)

2018 2019 2020 2021 2022

Airtel Main Competitor

Source: Company information, GSMA data.

Notes: (1) Market share is shown as a total of subscribers in Uganda for the period 2018 – 2022. (2) As of CY’22. 16
 Performance

Remarkable Growth Story

Airtel Uganda’s investment in its network have resulted in superior ARPU and a growing subscriber base

Superior ARPU (1,2) (UGX) Subscribers (3) (‘000)

Voice ARPU CAGR: 2.9% Data Subscriber CAGR: 23.8%

4,780
5,835
5,361

2,522
2019 2022
Voice ARPU
Data ARPU CAGR: (6.6%)

2019 2022
Market
12,448

Data Subscribers
leading ARPU

10,130
and growth in Total Subscriber CAGR: 8.3%
subscriber
base 2019 2022

17,170
Data ARPU

13,785
Total ARPU CAGR: 4.4%

10,841
10,031
8,825

8,262

2019 2022 2019 2022

Total ARPU Main Competitor Total ARPU ⁴ Total Subscribers Main Competitor Total Subscribers ⁴
• Airtel has shown sustained gains in revenue market share in the period, off the back of superior growth in ARPU relative to the main regional competitor,
but has lagged slightly in subscriber growth
• Higher ARPU supported by investment in 4G infrastructure allowing for greater revenue generation

Source: Company Information, GSMA, information shown for calendar years. Notes: (1) ARPU calculated based on Subscribers 30 days basis for comparative with competition. (2) As of CY’22. (3) As of Dec’22. 17
Data subscriber numbers: total number of subscribers who have consumed more than 1Mb on 2G, 3G or 4G in the last 30 days. (4) Measurements done on a 90 day basis while Airtel’s measurements on a 30 day
basis.
 Performance

Financial Performance Snapshot, 2022

Consistent revenue growth combined with margin expansion and strong cash flow generation

Revenue EBITDA (1)

Margin
UGX 1,594bn USD 433mn UGX 888bn USD 241mn 55.7%
Consistent growth in
revenue driven by
+5.9% +0.5% growth in number of
subscribers and ARPU

Free Cash Flow (1) Net Debt

FCF Conv. ND/EBITDA

28.6% 1.4x
Robust margins and
strong cash
conversion
UGX 254bn USD 69mn UGX 1,284bn USD 345mn

+29.9%

Source: Company information and Absa analysis, as of CY’22. Notes (1)On a post-IFRS 16 basis. Financials presented for GSM only. 18
 Strategy

Well-Articulated Strategy Underpinned by Five Key Pillars

Win with
technology

Win with
distribution
Win with
people
Transforming
Lives

Win with
data
Win with
cost

Underpinned by our Sustainability Strategy and accelerated

by our commitment to Digitalisation
Source: Company information. 19
 Strategy

Multiple Areas of Additional Upside

Market Opportunity Market Opportunity

• Fulfil high data needs of high-end • B2B enterprise opportunity with large
homes market fibre footprint with east to west
contiguity providing redundancy
Airtel Strategy Airtel Strategy
• Use a mix of wireless, fixed terminal • Roll out enterprise services currently
and selective fibre connectivity to Fixed
Partnerships offered across Uganda with scope
provide high speed, large data wireless
Content Enterprise for growth in expanding SME/large
needs broadband corporates

Market Opportunity
Content Airtel Strategy
• Growing demand across Uganda Partnerships
for digital content via mobile • Build a customer-friendly music and
devices video platform with a wide range of
local and international content

Immediate visibility of new revenue streams from new opportunities

20
 Win with
Distribution
and Data

Prior
Experience

Chief Commercial Officer since July 2018. Amit

Amit Kapur holds a BSc. in Physics from Delhi University
Chief Commercial Officer
Airtel Uganda Years of exp. 19+

Prior
Experience

With Airtel Uganda since February 2021. Henry

completed the Senior Executive Program at
Henry Njoroge Harvard Business School
Marketing Director
Airtel Uganda Years of exp. 18+
21
 Win with Distribution

Win with Distribution

Expansive distribution network to drive customer growth

Our Objectives Highlights

• To build on our unique, multichannel distribution network to increase our ability
to reach and serve customers • 8,000+ (1) exclusive distribution channels of Kiosks, Mini-shops and Others
• Strengthening our distribution infrastructure to win more customers by increasing
our distribution depth and breadth, with particular focus on rural areas
• Over 200,000 multi-brand outlets (2)
• Enhancing customer experience through simplified digital customer onboarding
process
• Growth in customer activating outlets, to +23,500 (2) ✓
• Broadening our distribution offer to enhance usage and ARPU, further
granulating distribution approach to focus more responsively on needs of
customers in smaller regions, and increasing our customer reach
• Year-on-year growth of 10.4% in customer base, to 14.3 million (2)
• Increased availability of digital recharge provides value to customers by
reducing number of touch points to conduct recharge
• 100% of customers onboarded through digital KYC application
• Simple and transparent pricing plans based on our ‘more for more’ principle,
helping us win and retain customers

Source: Company Information. Note: (1) As of Dec 2022. (2) As of May 2023. 22
 Win with Data

Win with Data

With 100% site-wide 4G coverage, we are driving digital inclusion in Uganda

Our Objectives Highlights

To maximise the value of data-based services and increase data penetration by
encouraging smartphone ownership and increasing data usage at scale, while
• 100% of sites are now on 4G
facilitating ease of access to the digital economy for customers in all our markets
• 19.8% growth in data customer base to 5.7 million (3)
• Leveraging our 4G network for data ARPU and revenue growth, using
technology to drive and retain market leadership • Now constituting 39.9% of our total customer base (3)
• Smartphone offerings for all new handsets, through well-priced, transparent • 30% growth in total data usage to 201mn TB(2)
bundles
• 11.7% year-on-year increase in data usage per customer per month (1)
• Further developing our wireless home broadband business
• 6.1GB 4G data usage per customer per month, up by 6.1% (2), with growth to
• Developing innovative products and data solutions, for corporate and SME 6.2GB (2)
customers through Airtel Business
• 4G data usage 66% of total data usage, up by 6% (2)
• Continuing focus on data security for customers

Source: Company Information. Note (1) Based on average Data Customers as of May 2023 for 4 quarters. (2) As of Dec 2022. (3) As of May 2023. 23
 Win with
Technology

Prior
Experience

Win with Technology

Rajesh has been Network Director at Airtel
Rajesh Agrawal Uganda Limited since 2011
Networks Director
Airtel Uganda Years of exp. 21+

Prior
Experience

Joined Airtel in 2021, Donald has a Msc in Information

Donald Twesiga Systems Management from University of Liverpool
IT Director
Airtel Uganda Years of exp. 20+

24
 Win with Technology

Win with Technology

Future-proof network with leadership in 4G coverage

Our Objectives Highlights

Create a leading, modernised network that can provide the data capacity to
meet rapidly growing demand and enhance connectivity and digitisation in our
• Single RAN network launched in 2019, giving us a fully modernized network
markets

Improving basic network uptime, quality and resilience and expanding our
network footprint and 4G capabilities
• Focusing on our rural coverage expansion
• Focusing on our network resilience and service continuity, and adding
capacity through aggregation
• Resilient country-wide Fibre network, with 35% of sites connected to Fibre
• 100% of sites on 4G
• Data capacity increased by 31% to 1,903+ TB per day, with peak hour data
utilisation at 36% (1)

• Building and modernising our network through optimal end-to-end design, • Launch of 5G services
including spectrum additions

• Expanding reach of 4G coverage and building capacity through our

2G>3G>4G approach, and future proofing through 5G compatibility

• Delivering best-in-class voice service quality while improving network uptime

Source: Company Information. Note: (1) As of Dec 2022. 25

 Win with Technology

The Leading Network

2G, 3G and 4G Site Distribution Coverage Resilient Fibre Network

Population Coverage Outdoor # Sites 2022 ✓ Multiple routes for ✓ Network with very high
resilience capacity
• Launched in 1995 2G Voice 2G
2G
• GSM mobile services 98.7% 2,582
• Launched in 2012 3G Data 3G
3G • WCDMA mobile
✓ Access to internet with ✓ High availability
services 98.1% 2,582 large capacity datacenter

• Launched in 2017 4G Data 4G

LTE
• LTE mobile services 90.7% 2,582
• Airtel Uganda’s 4G network is country-wide and based
on the latest 4G technology
• Network capacity utilization of 36%, with: Deployment • 100% of sites have 4G coverage
Data • Supported by largest spectrum allocation
‒ Total Data usage up by 30% to 201mn TB for Fast Data
Capacity
Network • Minimal incremental capex for moving to 4G due to
Utilisation ‒ 6.1BG 4G data usage per customer per month SRAN investments
Growth
• Anticipate readiness of the network for capacity
growth

Consistent leadership in NPS (1) further underscores the efficacy of our network and capacity enhancement investments

Source: Company information, as of Dec 2022. Note: (1) Net Promoter Score. WCDMA, Wideband Code Division Multiple Access. LTE, Long Term Evolution. SRAN, Single Radio Access Network. (2)
Represents deployment of base stations across footprint. 26
 Win with Technology

Reliable and Future-Proof IT

Compliance & Future-ready Resilient

Cyber Security 5 1 Infrastructure

Win Customers
Simplified & Open For Life Scalable & Reliable
Architecture 4 2 Operating Model

3 Delivering Agility
to Business

• Significant investment in network coverage and distribution infrastructure while planning the roadmap for 5G

• Technological infrastructure which meets the needs of business customers through easy to replicate platforms which leverage accessible skills

• Dedicated to all forms of compliance by understanding and mapping requirements needed to keep customers safe while complying with country and telecoms
regulation

• Airtel is ISO and BCIS (Business Continuity & Information Security) certified

27
 Win with
People and
Corporate
Governance

Prior Experience
• Previously head of HR at Stanbic Uganda
and HR Manger at Uganda Breweries

Human Resources Director at Airtel Uganda for

Flavia Lwanga over 10 years since September 2012
Human Resources Director
Years of exp. 25+
Airtel Uganda

Prior Experience
• Previously worked at MTN Uganda and
Byenkya, Kihika & Co. Advocates

Joined Airtel Uganda in 2010, as Legal &

Regulatory Director. Dennis holds an MBA from
Dennis Kakonge Edinburg Business School and a Bachelor of Laws
Legal & Regulatory Director (Hons) MUK Dip LP LDC
Years of exp. 18+
Airtel Uganda
28
 Win with People

Win with People

Diverse and talented workforce

Our Objectives Our Progress - 2022

Airtel Uganda aims to be the employer of choice with a diverse and inclusive Future-ready Talent
work environment that continues to foster a culture of high performance, ✓50% Step-ups
employee wellbeing, skills enhancement and coaching
✓Exported talent to at least 4 other OpCos across Airtel Africa
Future-ready Talent ✓24 Graduates at the Senior Leadership programme under Strathmore University
• Airtel Africa Mobility programme ✓Placement of Graduate Management Trainees in managerial roles
• Learning and Development ✓State of the art, online learning platform - 18 hours of learning per user
• Young Talent Development programmes
Employee Engagement and Culture + Wellbeing
• Elevating Mindz programme
✓Competitive Monthly Sales Incentives and Annual Bonus since inception
Employee Engagement and Culture + Wellbeing ✓Best-in-class health insurance, and competitive inhouse provident fund
• Pay for performance (fixed and variable) ✓Bi-annual employee engagement: survey achieved 87% response rate, with
• Spot reward and recognition platform overall engagement score of 79% (1)
• Flexi work policy ✓Zero fatalities and satisfactory Occupational Safety & Health rating
• Compelling Employment Value Proposition Agile Operating Model
Agile Operating Model ✓5 Operational Cross Functional Teams
• Cross-functional teams ✓Sales persons monitor performance daily, and work towards rewards
• Simplification and automation of work Processes ✓Hybrid ways of working with enhanced tools
• Governance on structures, decision making and efficiency of processes Winning with Diversity
Winning with diversity ✓34% in workforce (2)
• Equitably employ, develop and retain talent from different backgrounds ✓17% in ExCo (2)
✓Employees from 4 nationalities

Note: (1) Survey run at an Airtel Africa group level. (2) As of December 2022. 29
 Win with People
Environmental, Social and Governance Initiatives
Airtel’s CSR initiatives are aimed at improving Ugandan communities while being aligned with the UN’s Sustainable
Development Goals (SDGs)
Our Objectives
• We aim to use the power of the internet to create solutions that address digital,
financial inclusion and improve access to education
• Airtel is also intent on supporting social causes in the healthcare space, which
will further enhance the natural health of Ugandan citizens and improve
people’s ability to respond to initiatives that are improving their quality of life
• Airtel’s partnerships with the Government and Private Sector aim to transform
other sectors such as agriculture, health, education, trade and commerce
among others
• As a technology enabler, Airtel’s contribution to the transformation of the ICT
sector, and the Ugandan economy continues to grow
• Airtel Uganda is committed to maintaining the highest level of corporate
governance standards
Digital Inclusion Programme Airtel adopt a school Program
Source: Company information
Our Impact
Through 14 public libraries powered by Airtel Internet, 108,000
people have been reached across Uganda. Both in-school and
out-of-school learners are able to use basic to advanced internet
skills to improve their learning and skills
Airtel is running an award-winning safe motherhood programme
that has advocates for safe delivery in hospital, antenatal care
for expectant mothers and training of midwives and nurses in
basic obstetrics
Airtel’s short-term partnership with EzyAgric ensured digital access
to verified, quality agricultural information that farmers use
through dialing a USSD code to request for information,
understand weather patterns, receive videos, SMS and audios of
how to plant and take care of their animals
Environmental commitment through the generation of clean
electricity through 434 solar sites
Staff Volunteerism Agricultural Partnership
30
 Financial
Performance

Prior Experience
• Previously CFO of Airtel Tanzania

Financial
Previously Finance director of Airtel Tanzania for 7+
Performance
years, with an additional 11+ years of experience
as Finance Director for Airtel Sierra Leone. Nishant
Nishant Mohan is a member of the Institute of Charted
Financial Director
Accountants of India
Airtel Uganda Years of exp. 20+

31
Strong Financial Performance
Airtel Uganda Shows Strong Revenue Growth… …With Matching Growth in EBITDA
(Revenue, UGX’bn) (EBITDA, UGX’bn) ( EBITDA Margin )
CAGR: 13.7% 16.5% CAGR: 17.5% 18.9%
2,000
56% 57%
1,200 60%
50%
1,500 1,000 50%

800 40%
1,000
1,859 600 30%
1,594 1056
400 888 20%
500 1,087
548
200 10%
- 0 0%
2019 2022 2023F 2019 2022 2023F

Growth in Free Cash Flow… …And Balanced Capital Allocation

(FCF, UGX’bn) (Dividends (1), UGX’bn) ( Net Debt to EBITDA)

CAGR: 22.5% 63.2% 2.0x

1.5x 1.4x 1.3x
500
1.0x
500

250 0.0x
433 514
265 359
144 296
0 0 -1.0x
2019 2022 2023F 2019 2022 2023F

Source: Company financials. Note: Financials presented are GSM only.

Note: (1) Represents dividends paid. 32
Sustained Revenue and EBITDA1 Growth
Revenue Bridge
(UGX’bn)
CAGR: 13.7% 16.6% • Slower growth in 2022 as traffic and
usage adjusted to post-COVID world
1,086 1,594 1,859 • Inflationary pressure and subdued
13 consumer spend had a negative
187 126
39 65 impact on ARPU levels, though these
202 113
267
are expected to rebound
74 554 741 • 2023 Revenue growth is expected to be
driven largely by the voice and data
352
segments. This growth is anchored
mainly on increased usage across these
660 927 992 segments and reinforced by continuous
customer base growth
2019 Voice Data Other 2022 Voice Data Other 2023F

Voice Data Other Services

EBITDA Bridge
(UGX’bn)
• Operating expenses in 2022 increased
Margin Margin Margin
50% 56% 57% primarily driven by increased tower
CAGR: 17.5% 19.0% charges and sales and distribution
spend
• EBITDA growth impacted by slower
revenue growth post-COVID and rising
operating costs, consequently there
has been a marginal decline in the
2022 EBITDA margin to 55.7% from
58.7% in FY2021

Source: Company information. Financials presented for GSM only. Note: (1). EBITDA presented post IFRS 16. 33
Consistent Free Cash Flow Generation
UGX’bn

FCF conversion

26.4% 29.9% 41.0%

CAGR: 22.4% 63.2%

• Cash flow from operations have normalised from the high levels experienced in 2021 to UGX’830bn in 2022 and expected to grow to UGX’1,066Bn in
2023
• Free cash flow conversion remains above levels seen previously, illustrating in the strong cash generation ability of the business

Source: Company information.

Note: Financials presented for GSM only. 34
Robust Balance Sheet with Secure Leverage Levels
Strengthening the balance sheet with sustainable leverage

Leverage Snippet Net Debt to EBITDA (x)

Net debt 2019 2020 2021 2022 2023F

UGX'bn 1.6x
1.5x 1.4x
Borrowings 368.3 592.6 490.8 628.8 722.7 1.3x
1.1x
Lease liabilities 509.6 524.4 506.2 690.8 656.9

Cash (46.3) (26.8) (8.3) (35.2) (36.9)

Net debt 831.6 1,090.2 988.9 1,284.5 1,342.7 2019 2020 2021 2022 2023F

Dividend Pay-out Ratio Return on Invested Capital (ROIC) (1)

137%
110% 112% 28%
93% 99%
16% 15%

2019 2020 2021 2022 2023F 2019 2022 2023F

• On average, 95% of retained earnings has been distributed as a dividend each
year, with an expected dividends paid of UGX514bn in 2023F
• Airtel Uganda’s dividend policy will be to target a dividend pay-out ratio of 95%
of Retained Earnings Or NPAT, whichever is higher, on the basis of audited
financial statements for the full financial year
• Airtel Uganda has maintained a steady return on invested capital
• Driven by consistent revenue growth, yielding a net profit margin in excess of
20% from 2019 – 2022, with an expected net profit margin of +24% 2023F

Source: Company Information. Notes: Financials presented for GSM only. (1) ROIC calculation derived from NOPAT / (Shareholders’ equity + Net debt + Invested Capital). 35
Sustained Capex Levels to Support Expansion and Growth
Growth Capex makes up more than 90% of total capex

Capital Expenditure Capex for Growth Across All Segments

Capex as a • Total capital expenditure of UGX241bn, a 91% increase over 2021, and
% of sales
(UGX’bn)
continued investment of UGX244bn in 2023F

19% 15% 13% • 93% of capex investment is toward growth initiatives which is targeted at
enhancing network capacity, increasing overall coverage and ensuring reliable
connectivity

• 100% upgraded to 4G
241 244 • Increased data capacity by 31% to 1.9k Tb/day with only 36% capacity
206
utilisation in the network

• Rolled out 962km of fibre over 2022 resulting in 8,397km of total fibre
deployment
2019 2022 2023F

2022 Capital Expenditure

7%

17%

76%

Growth Capex - Coverage⁽¹⁾ Growth Capex - Capacity⁽²⁾ Maintenance Capex⁽³⁾

Note: (1) Growth Capex Coverage includes new sites for additional population coverage, distribution expansion and Enterprise. (2) Growth Capex Capacity includes new sites and transmission for
capacity enhancement and IT Capex. (3) Maintenance Capex mainly includes core network and replacement capex. 36
Transparent and Balanced Capital Allocation Policy
2

Capex spend (excluding spectrum) of UGX241bn over 2022 a driver

1 of future growth

Efficient capital Sustainable

investments capital structure Net Debt to EBITDA at 1.4x with a continuing focus on balance
2 sheet strength

1 Strong dividend payout, with Airtel Uganda’s dividend policy to

Return cash to
3 target a dividend pay-out ratio of 95% of Retained Earnings Or
3 NPAT, whichever is higher
shareholders

Well Defined Hedging Policy
• Airtel is exposed to foreign exchange risk, primarily
with respect to the USD, to mitigate against this risk:
• The company may use forward contracts to
counter changes and fluctuations in foreign
currency
• Airtel has continuously embarked on aggressive
negotiations to have all local suppliers of Opex
charge the company in local currency
Mitigating Liquidity Risk
• Due to the dynamic nature of the business, Airtel
has exposure to liquidity risk:
• Prudent liquidity risk management is achieved
through maintaining sufficient cash balances, and
the availability of funding from an adequate
amount of committed credit facilities
Manageable Credit Risk
• Trade receivables derive from sales made to a
large number of independent customers:
• The customer base is widely distributed both
economically and geographically, there is minimal
concentration of credit risk
• Airtel’s credit control function assesses the credit
quality of each customer, with individual credit
limits set based on internal or external factors or
made in accordance with limits set by the Board

Source: Company Information. 37

Management Aspirations

• Widest smartphone network Incremental • Sweating the existing assets

leadership Mobile revenue Underlying and costs (Capex / Opex)
for more revenues
• Data penetration and market share EBITDA to
products • Offline to online distribution
increase incremental
• Quality customer additions • Churn reduction
revenue
• Steadily increasing revenue • Aim for incremental EBITDA
market share as Add adjacent / incremental revenues to
demonstrated through the be higher than overall
uptick from 46.3% in 2018 to
revenue streams EBITDA %
49.3% in 2022

• Capturing new business opportunities:

− Fixed wireless broadband
− Enterprises

Mobile Capital Expenditure

• Revenue growth through increased data penetration to c. • Capex intensity ratio expected to decline over time
52% and customer base growth supported by distribution
and network expansion
• Expand EBITDA margin through a lean operating model

Source: Company information. 38

 Offering
Summary

Offering Summary

Prior Experience
• Previously CEO Airtel Kerala and Tamilnadu

Offering Summary
Managing Director of Airtel Uganda Limited since
October 2020, he holds a MBA from Symbiosis
Manoj Murali International University and a BE in Instrumentation
Managing Director & Electronics from University of Poona
Airtel Uganda Years of exp. 22+

39
Offering Summary
Summary Benefits of Listing Airtel Uganda
• Increased independence of the company and its directors
Issuer • Airtel Uganda Limited

Shareholders • 100% owned(1) by Airtel Africa Plc

• Contribute to the development of Ugandan capital markets

Offer terms • Secondary proceeds only • Higher level of corporate governance

• Access to capital markets for future growth funding

Dividend • Targeted payout ratio of 95% of NPAT or Retained Earnings,
Policy whichever is higher
• Company in a mature, highly profitable phase
• Uganda Securities Exchange, Main Investment Market • Strong FCF generation + ability to pay dividends
Listing Segment
• Increased brand awareness
• Outside the US with reliance on Regulation S
Offer
• To retail investors via m-IPO platform, USE website and
structure receiving banks
• Build on key relationships with regulators

Expected Timetable

Prospectus published End Aug

Offer period End Aug to Early Oct

Allotment date (results announcement) End Oct

Admission to Listing and commencement of trading on the USE End Oct

40
 Q&A

Q&A

41
 Closing
Remarks

Prior Experience
• Previously CEO Airtel Kerala and Tamilnadu

Offering Summary
Managing Director of Airtel Uganda Limited since
October 2020, he holds a MBA from Symbiosis
Manoj Murali International University and a BE in Instrumentation
Managing Director & Electronics from University of Poona
Airtel Uganda Years of exp. 22+

42
High Growth Potential, Attractive Margins and Strong Dividends
An established high-growth business with attractive margins and strong dividend potential, supported by a world-class telco
group

$
High Revenue Growth
• Demographic dividend
as 1million Ugandans
p.a. become eligible
Sustainable, High Dividend Pay-Out
subscribers at age 18
• Favourable High Margins • Strong operating cash
macroeconomic • Operating flows
fundamentals leverage • Well invested network
• Transition from 2G/3G to from revenue with reducing capex
4G driving data usage growth intensity
• Disruptions yield upsides: • Focus on cost
̶ Home broadband efficiencies
̶ Enterprise solutions
̶ Content

43
Thank You
Appendix
Operating Expenses

EBITDA 548 686 884 888 1,056

(UGX’bn) Commentary
EBITDA 50.4% 53.1% 58.7% 55.7% 56.8%
margin • Network expenses are comprised of tower charges, repairs
Opex
and maintenance, internet access and bandwidth charges,
Productivity
49.8% 47.1% 41.6% 44.7% 43.5% leased line charges and electricity and water

• The increase in network expenses is driven by the addition of

over 200 sites per year to expand 4G network coverage

808
• The growth in sales and distribution expenses is attributable to
626
712 Airtel Uganda investment in its distribution platform, with 6.3%
610
541 growth in customer activating outlets and increased use of
kiosks and mini-shops

• Overall, despite rising fuel prices and a high inflationary

2019 2020 2021 2022 2023F environment, the company has maintained strong EBITDA
margins through cost optimisation and an increase in
Opex Split 2019 2020 2021 2022 2023F customer base

Networking operating expenses 30.3% 33.0% 33.9% 35.5% 37.4%

Access charges 8.0% 6.4% 5.4% 5.9% 6.7%
License fees and spectrum usage charges 8.7% 7.1% 6.4% 5.5% 5.5%
Employee benefits expenses 10.4% 10.7% 12.3% 11.9% 10.9%
Sales and Marketing Expenses 18.4% 20.5% 24.2% 24.8% 24.2%
Other operating expenses 23.8% 22.3% 17.3% 16.6% 15.3%
Impairment (reversal) / loss on financial 0.5% (0.1%) 0.5% (0.2%) 0.0%

Source: Company information. 46

Statement of Comprehensive Income
Income Statement Commentary
2018 2019 2020 2021 2022
UGX ‘Mn UGX ‘Mn UGX ‘Mn UGX ‘Mn UGX ‘Mn
• Although revenue growth slowed in 2022,
Income revenue levels have shown consistent growth
Revenue 1,001,756 1,086,684 1,293,562 1,505,345 1,594,271
Other income 3,247 2,415 2,271 4,256 5,627 in the long term. Additionally, there has been
1,005,003 1,089,099 1,295,833 1,509,601 1,599,898
an approximately 50% growth in roaming
Expenses
Network operating expenses (146,956) (163,807) (201,405) (212,119) (252,845) revenue, adjusting to levels seen before the
Access charges (43,657) (43,052) (39,147) (33,489) (42,139)
Licence fees and spectrum usage charges (36,784) (47,298) (43,380) (40,137) (38,976)
pandemic
Employee benefits expenses (53,448) (56,436) (65,043) (77,246) (84,559)
Sales and marketing expenses (90,075) (99,551) (125,093) (151,193) (176,351) • D&A consists primarily of depreciation of
Impairment (reversal) / loss on financial assets (3,634) (2,438) 704 (3,001) 1,095
Other operating expenses (72,442) (128,558) (136,195) (108,462) (118,114) network infrastructure, right-of-use assets and
(446,996) (541,140) (609,559) (625,647) (711,889)
amortisation of the spectrum license and IP
Earnings before interest, tax depreciation and amortisation 558,007 547,959 686,274 883,954 888,009
Depreciation and amortisation
Operating profit
(168,700)
389,307
(191,442)
356,517
(216,292)
469,982
(249,235)
634,719
(272,455)
615,554
• Finance expenses include interest on third
Finance income 41,926 36,846 6,143 14,802 396 party borrowings, lease liabilities and gains /
Finance costs (99,552) (87,761) (77,715) (84,475) (142,350)
losses on hedging derivatives
Profit before tax 331,681 305,602 398,410 565,046 473,600

Income tax expense (63,427) (89,928) (121,269) (172,429) (147,897) • Finance expenses increase in 2022 primarily
Profit for the year 268,254 215,674 277,141 392,617 325,703
due to FX movements

Other comprehensive income • Higher than usual tax expenses (which also
Other comprehensive income that will not be reclassified to profit or loss in
subsequent periods accounted for a tax refund, adjustment based
Remeasurement gain / (loss) on defined benefit plans 61 39 6 (31) 73
Tax impact on above (18) (12) (2) 9 (22) on tax audits and tax expenses in relation to
Other comprehensive income / (loss) for the year, net of tax 43 27 4 (22) 51
previous years) in 2022 resulted in a marked
Total comprehensive income for the year, net of tax 268,297 215,701 277,145 392,595 325,754 decline in profit
Earnings per share (UGX)
Basic and diluted earnings per share 191 153 197 279 231

Source: Company information. Notes (1). EBITDA presented post IFRS 16. Financials presented for GSM only. 47
Statement of Financial Position
Statement of Financial Position Commentary
2018 2019 2020 2021 2022
UGX ‘Mn UGX ‘Mn UGX ‘Mn UGX ‘Mn UGX ‘Mn
• Property, plant and equipment mainly
ASSETS
Non-current assets
includes network infrastructure which is
Property plant and equipment 460,083 548,925 590,377 579,681 674,990 projected to increase by additional
Capital work-in-progress 47,635 52,252 14,189 48,887 40,930
Right-of-use-assets 408,580 409,743 422,245 421,919 601,276 investment partially offset by depreciation
Intangible assets 112,969 112,955 470,876 440,011 409,194
Financial assets
Loan assets 935,060 - - - - • Right of use assets comprises the amount of
Other non-current assets 5,427 28,911 33,824 40,902 49,251
1,969,754 1,152,786 1,531,511 1,531,400 1,775,641 the initial measurement of the lease liability, it
Current assets
Inventories 1,384 2,618 1,944 4,310 5,447 is projected to increase because of additional
Financial assets
Trade receivables 36,213 38,664 60,256 51,987 75,650
sites taken on leases and renewals of existing
Cash and cash equivalents 12,244 46,254 26,795 8,256 35,204 contracts
Others 5,484 135 5,295 6,991 9,103
Income tax asset (net) 22,251 9,762 7,869 3,236 -
Other current assets 35,012 44,927 46,489 47,963 69,356 • Retained earnings is the balance of
112,588 142,360 148,648 122,743 194,760
TOTAL ASSETS 2,082,342 1,295,146 1,680,159 1,654,143 1,970,401 undistributed profits to the shareholders of the
EQUITY AND LIABILITIES
Equity company
Share capital 1,408 1,408 1,408 1,408 1,408
Share premium 16,128 16,128 16,128 16,128 16,128
Retained earnings 83,326 116,021 136,176 139,224 106,239
Other reserves 25 52 56 34 85
100,887 133,609 153,768 156,794 123,860
Non-current liabilities
Financial liabilities
Borrowings - 368,267 145,270 232,748 311,817
Lease liabilities 442,914 428,622 427,265 386,515 555,318
Others 1,979 1,550 116,630 108,515 110,493
Provisions 1,619 2,084 2,091 2,199 2,606
Deferred tax liabilities (net) 39,438 59,790 74,384 85,764 92,691
Deferred revenue - - - - 12,613
485,950 860,313 765,640 815,741 1,085,538
Current liabilities
Financial liabilities
Borrowings 1,118,733 - 447,287 258,114 317,018
Lease liabilities 69,562 80,973 97,155 119,730 135,526
Trade payables 81,087 102,228 115,374 163,876 152,762
Derivative instruments - 307 1,506 1,191 5,641
Others 169,079 57,908 26,203 61,464 46,084
Deferred revenue 18,856 13,953 15,083 21,585 35,125
Provisions 5,288 4,173 5,806 3,708 6,231
Income tax payable (net) - - - - 9,910
Other current liabilities 32,900 41,682 52,337 51,940 52,706
1,495,505 301,224 760,751 681,608 761,003

TOTAL EQUITY AND LIABILITIES 2,082,342 1,295,146 1,680,159 1,654,143 1,970,401

Source: Company information. Notes (1). EBITDA presented post IFRS 16. Financials presented for GSM only. 48
Cash Flow Statement
Cash Flow Statement Commentary
2018 2019 2020 2021 2022
UGX ‘Mn UGX ‘Mn UGX ‘Mn UGX ‘Mn UGX ‘Mn
• Net cash from operating activities: The
OPERATING ACTIVITIES increase in cash generated from operations
Profit before tax 331,681 305,602 398,410 565,046 473,600
Adjustments for: before working capital is mainly driven by
Depreciation and amortisation 168,700 191,442 216,292 249,235 272,455
Gain on disposal of assets - (25) - - - EBITDA performance.
Interest income (25,768) (25,842) (2,746) (253) (396)
Unrealised foreign exchange losses / (gains) (16,158) (11,004) (3,397) (263) 19,861
Interest on borrowings 31,406 41,141 23,837 37,444 52,670
• Net cash used in investing activities: Airtel
Interest on lease liabilities 41,537 41,337 42,494 37,977 40,840 Uganda has made consistent investments in
Interest on deferred spectrum - - 4,292 7,914 7,923
Other non-cash adjustments 5,023 2,538 (1,290) 2,708 (1,567) property, plant and equipment, with
Operating cash flow before changes in working capital 536,421 545,189 677,892 899,808 865,386
(Increase) / decrease in inventories (712) (1,234) 674 (2,366) (1,137) significant additions to its telecom licenses and
(Increase) / decrease in trade receivables (23,303) (4,886) (20,890) 5,268 (21,686)
(Increase) / decrease in other financial and non-financial assets 15,393 (28,052) (11,633) (10,250) (31,853) spectrum in 2020. Capital expenditure
(Decrease) / increase in trade payables (50,221) 23,723 5,577 46,786 (15,072)
(Decrease) / increase in provision (17,634) (624) 1,644 (2,010) 2,980
primarily relates to sites and other network
(Decrease) / increase in deferred revenue (8,825) (4,903) 1,130 6,502 26,154 expenditure
Increase / (decrease) in other financial and non-financial liabilities (4,135) 7,779 11,658 5,118 5,917
Net cash generated from operations before tax 446,984 536,992 666,052 948,856 830,689
Income tax paid (79,883) (57,414) (104,785) (156,407) (127,845) • Net cash used in financing activities: Finance
Net cash generated from operating activities (a) 367,101 479,578 561,267 792,449 702,844
INVESTING ACTIVITIES cost primarily includes interest on external debt
Purchase of property, plant and equipment and capital work in progress (149,276) (205,557) (154,439) (126,277) (241,205)
Purchase of intangible assets - - (242,708) - - and interest on lease liability. The proceeds
Loans to related party
Deferred consideration paid*
(537,250)
(35,692)
935,060
-
-
-
-
-
-
-
from borrowings have been used to fund
Proceeds from sale of property, plant and equipment - 27 209 1,761 935 operational working capital, license fee
Interest received 463 25,842 2,746 253 396
Net cash flows (used in) / generated from investing activities (b) (721,755) 755,372 (394,192) (124,263) (239,874) payments and tax payments
FINANCING ACTIVITIES
Proceeds from borrowings 941,463 - 145,842 244,811 150,000
Payment of borrowings (384,067) (675,450) - (384,415) (142,270)
Interest paid on borrowings (28,218) (45,561) (22,354) (37,037) (53,551)
Payment of lease liability (100,287) (109,828) (118,074) (130,815) (143,337)
Payment of deferred spectrum fee - (15,147) (10,893) (11,353)
Redemption of preference shares (178,688) - - - -
Dividend paid (20,278) (295,619) (256,986) (389,569) (358,688)
Net cash flows (used in) / generated from financing activities (c) 229,925 (1,126,458) (266,719) (707,918) (559,199)

Net movement in cash and cash equivalents during the year (a+b+c) (124,729) 108,492 (99,644) (39,732) (96,229)
Cash and cash equivalents as at beginning of the year 62,491 (62,238) 46,254 (53,390) (93,122)
Cash and cash equivalents as at end of the year (62,238) 46,254 (53,390) (93,122) (189,351)

Source: Company information. Financials presented for GSM only. 49

Interim Statement of Comprehensive Income
Statement of Comprehensive Income for the Period Ended 31 May 2023 Commentary
1 January 2022 to 1 January 2023 to
31 May 2022 31 May 2022
• Based on historical trends, revenue generation
UGX ‘Mn UGX ‘Mn demonstrates seasonality and is expected to
Unaudited be stronger in the second half of the year,
Income which comprise the period from June to
Revenue 657,801 712,284
Other income 766 1,147 December 2023
658,567 713,431

Expenses
• This seasonality is largely due to higher data
Network operating expenses (96,136) (128,876) usage as a result of school holiday period in
Access charges (15,898) (21,573)
Licence fees and spectrum usage charges (16,182) (17,910) the second half of the year. In addition, further
Employee benefits expense (33,860) (30,434)
Sales and marketing expenses (72,576) (83,132) revenue generation and growth in the second
Impairment loss on financial assets (1,666) (825)
Other operating expenses (40,595) (53,584)
half of 2023 will be supported by the
(276,913) (336,334) investment in network capacity and
Earnings before interest, tax, depreciation and amortisation 381,654 377,097 acquisition of additional spectrum made in the
Depreciation and amortisation (109,508) (130,449) January to May 2023 period
Operating profit 272,146 246,648
• EBITDA and EBITDA margins in the January to
Finance Income
Finance costs
46
(69,800)
6,109
(69,958)
May 2023 period were impacted by the
seasonal trends in revenue generation as well
Profit before tax 202,392 182,799
certain network expenses and investments the
Income tax expense (63,553) (54,983)
benefits of which will accrue in the second
Profit for the period 138,839 127,816
half of the year
Other comprehensive income for the year (OCI)
Other comprehensive income that will not be reclassified to profit or loss in subsequent
periods
Re- measurement loss on defined benefit plans, net of tax (6) (30)
Other comprehensive loss for the period (6) (30)

Total comprehensive income for the period, net of tax 138,833 127,786

Earnings per share

Basic and diluted earnings per share 99 91

Source: Company information. Financials presented for GSM only. 50

Interim Statement of Financial Position
Statement of Financial Position for the Period Ended 31 May 2023 Commentary
31 December 2022 31 May 2023
UGX ‘Mn UGX ‘Mn • Property, plant and equipment mainly includes
Audited Unaudited
network infrastructure which is projected to
ASSETS
Non-current assets
increase by additional investment partially
Property, plant and equipment 674,990 729,299 offset by depreciation
Capital work-in-progress 40,930 34,590
Right-of-use assets 601,276 676,105
Intangible assets 409,194 396,445 • Right of use assets comprises the amount of
Other non-current assets 49,251 54,815
1,775,641 1,891,254 the initial measurement of the lease liability, it
Current assets
Inventories 5,447 2,616 is projected to increase because of additional
Financial assets
Trade receivables 75,650 80,751 sites taken on leases and renewals of existing
Cash and cash equivalents 35,204 11,066
Others 9,103 11,363 contracts
Other current assets 69,356 79,799

Total assets
194,760
1,970,401
185,595
2,076,849
• Retained earnings is the balance of
undistributed profits to the shareholders of the
EQUITY AND LIABILITIES
Equity company
Share capital 1,408 1,408
Share premium 16,128 16,128
Retained earnings 106,239 96,711
Other reserves 85 55
Total equity 123,860 114,302

Non-current liabilities
Financial liabilities
Borrowings 311,817 283,139
Lease liabilities 555,318 621,698
Others 110,493 108,170
Provisions 2,606 2,755
Deferred tax liability 92,691 91,589
Deferred revenue 12,613 12,802
1,085,538 1,120,153
Current liabilities
Financial liabilities
Borrowings 317,018 358,388
Lease liabilities 135,526 150,323
Trade payables 152,762 114,734
Derivative instruments 5,641 518
Others 46,084 55,749
Deferred revenue 35,125 31,921
Provisions 6,231 6,434
Income tax payable (net) 9,910 65,929
Other current liabilities 52,706 58,398
761,003 842,394
Total equity and liabilities 1,970,401 2,076,849

Source: Company information. Financials presented for GSM only. 51

Interim Cash Flow Statement
Cash Flow Statement for the Period Ended 31 May 2023 Commentary
1 January 2022 to 1 January 2023 to
31 May 2022 31 May 2023
• Net cash from operating activities: The
UGX ‘Mn UGX ‘Mn increase in cash generated from operations
Unaudited before working capital is mainly driven by
Cash flows from operating activities EBITDA performance.
Profit before tax 202,392 182,799

Adjustments for:
Depreciation and amortisation 109,508 130,449
• Net cash used in investing activities: Airtel
Finance income (46) (6,108) Uganda has made consistent investments in
Unrealised foreign exchange (gains) / losses 30,076 (5,722)
Interest expense on borrowing and other financial liability 14,704 31,494 property, plant and equipment, with
Interest on lease liabilities 15,750 22,034
Interest on spectrum fee 3,198 3,247 significant additions to its telecom licenses and
Other non-cash adjustments 5,019 2,656
Operating cash flow before changes in working capital 380,601 360,849 spectrum in 2020. Capital expenditure
Decrease / (increase) in inventories (6,131) 2,831
primarily relates to sites and other network
Increase in trade receivables (12,159) (5,686) expenditure
Increase in other financial and non-financial assets (15,042) (16,007)
Decrease in trade payables (21,979) (33,787)
Increase / (decrease) in provisions (1,134) 352
Decrease in deferred revenue (1,175) (3,015) • Net cash used in financing activities: Finance
Increase in other financial and non-financial liabilities 2,400 4,542
Net cash generated from operations before tax 325,381 310,079
cost primarily includes interest on external
Income tax paid (4,439) (66) debt and interest on lease liability. The
Net cash generated from operating activities (a) 320,942 310,013
proceeds from borrowings have been used to
Cash flows from investing activities
Purchase of property, plant and equipment and capital work-in-progress (111,078) fund operational working capital, license fee
Interest received 46 6,108
Net cash flows used in investing activities (b) (95,327) (104,970) payments and tax payments
Cash flows from financing activities
Proceeds from borrowings 23,157 1,254
Payment of borrowings (24,797) (36,772)
Interest on borrowings (9,235) (27,830)
Payment of lease liabilities (56,275) (74,504)
Interest on spectrum fee (3,198) (3,247)
Dividend paid (132,000) (137,344)
Net cash flows used in financing activities (c) (202,348) (278,443)
Decrease in cash and cash equivalents during the period (a+b+c)
23,267 (73,400)
Cash and cash equivalents as at beginning of the period (93,122) (189,351)
Cash and cash equivalents as at end of the period (69,855) (262,751)

Source: Company information. Financials presented for GSM only. 52

Pro-Forma Statement of Comprehensive Income
Forecast Income Statement Commentary
Forecast for the year ending • Revenue has been forecast to grow by 16.6%
31 December 2023
UGX ‘Mn year on year in 2023, driven largely by the
voice and data segments. This growth is
Income
Revenue 1,858,775 anchored mainly on increased usage across
Other income 5,285
these segments and reinforced by continuous
1,864,060
customer base growth through quality
Total operating expenses (807,670)
Earnings before interest, tax depreciation and amortisation 1,056,390
acquisitions. Voice revenue has been
projected to grow by 7.0% year on year,
Depreciation and amortisation (287,836)
Earnings before interest and tax 768,554
supported by customer base growth of 17.1%
and partially anchored by voice average
Finance costs (115,569)
usage per user per month (MOU/Sub) growth
Profit before tax 652,985 of 0.7%. Data revenue has been projected to
Income tax expense (195,957)
grow by 33.6% year on year with contribution
to overall revenue increasing to 39.9%
Profit for the year 457,028

Basic and diluted earnings per share 22 • Operating expenses continue to be impacted
by rising fuel prices, which is likely to further
increase in 2023 as well. The total operating
expenses (including regulatory charges) have
been forecast to increase by 13.5% mainly
due to the planned volume of distribution and
networks expansion in 2023. However, overall
percentage of operating expenses to
revenues is expected to drop from 44.7% in
2022 to 43.5% in 2023, largely due to a lean
and fixed operations model

Source: Company information. Notes (1). EBITDA presented post IFRS 16. Financials presented for GSM only. 53
Pro-Forma Statement of Financial Position
Forecast Statement of Financial Position Commentary
Forecast for the year ending
31 December 2023
• Property, plant and equipment mainly
UGX ‘Mn includes network infrastructure which is
ASSETS
projected to increase by additional
Non-current assets investment partially offset by depreciation
Tangible assets 812,113
Right of use assets 571,423
Goodwill 112,908 • Right of use assets comprises the amount of
Intangible assets 265,469
the initial measurement of the lease liability, it
Other non-current assets 49,251
1,811,164 is projected to increase because of additional
sites taken on leases and renewals of existing
Current assets
Other current assets 156,678 contracts
Cash and bank balances 36,945
193,623
• Retained earnings is the balance of
TOTAL ASSETS 2,004,787
undistributed profits to the shareholders of the
EQUITY AND LIABILITIES company
Equity
Share capital 40,000 • The Company plans to increase capacity as
Share premium -
well as coverage by adding more sites with a
Retained earnings 27,040
Actuarial surplus 85 specific focus on data network, which is
Total equity 67,125
expected to cost approximately UGX 202
Non-current liabilities billion. The estimated total capital expenditure
Borrowings 511,923
Lease liabilities 521,362
for the year ending 2023 is UGX 244 billion, with
Other non-current liabilities 231,979 majority of it being attributable to the addition
1,265,264
Current liabilities
of sites
Borrowings 210,769
Lease liabilities 135,591
Current liabilities 308,390
Other liabilities 17,648
672,398

TOTAL EQUITY AND LIABILITIES 2,004,787

Source: Company information. Financials presented for GSM only. 54

Pro-Forma Cash Flow Statement
Forecast Cash Flow Statement Commentary
Forecast for the year ending • Net cash from operating activities: The
31 December 2023
UGX ‘Mn increase in cash generated from operations
OPERATING ACTIVITIES
before working capital is mainly driven by
Profit before tax 652,985
Adjustments for: EBITDA performance.
Depreciation and amortisation 287,836
Finance income (1,658)
Unrealised foreign exchange losses / (gains) - • Net cash used in investing activities: Airtel
Interest expense on borrowings and other financial liabilities 66,573
Uganda has made consistent investments in
Interest on finance lease 43,178
Interest on spectrum fee 7,476 property, plant and equipment, with
Operating cash flow before changes in working capital 1,056,390
significant additions to its telecom licenses and
Changes in working capital 10,352
Net cash generated from operations before tax 1,066,742 spectrum in 2020. Capital expenditure
Income tax paid (168,742)
Net cash generated from operating activities (a) 898,000
primarily relates to sites and other network
expenditure
INVESTING ACTIVITIES
Purchase of property, plant and equipment and capital work in progress (244,120)
Interest received 1,658 • Net cash used in financing activities: Finance
Net cash flows used in from investing activities (b) (242,462)
cost primarily includes interest on external
FINANCING ACTIVITIES debt and interest on lease liability. The
Proceeds from borrowings 183,090
Repayment of borrowings (89,232)
proceeds from borrowings have been used to
Interest on borrowings and other finance charges (66,573) fund operational working capital, license fee
Interest paid on finance lease (43,177)
Repayment of lease liabilities (113,130)
payments and tax payments
Repayment of deferred spectrum fee (3,534)
Interest on spectrum fee (7,477)
Dividend paid to shareholders (513,763)
Net cash flows used in financing activities (c) (653,796)
Net movement in cash and cash equivalents during the period (a+b+c) 1,742
Cash and cash equivalents as at beginning of the period (189,352)
Cash and cash equivalents as at end of the period (187,610)

Source: Company information. Financials presented for GSM only. 55